Nigerian payments fintech, Nomba has secured a US$3 million debt facility from CardinalStone Finance Company Limited. This is significant to expand its cross-border payments business and increase its monthly transaction volume from more than US$480 million to over US$1 billion.
The fresh financing will provide the company with additional US dollar liquidity to strengthen its near-instant international payment infrastructure, beginning with the Democratic Republic of Congo (DRC), before expanding into Zambia and Uganda.
Nomba’s co-founder and chief executive, Yinka Adewale, said the funding would provide the company with “more room to move, more liquidity, more corridors, faster settlement” as African businesses increasingly trade with global markets.
The development marks another significant step in Nomba’s evolution from a local payments provider into a broader African cross-border financial infrastructure company.
Nomba’s Cross-Border Expansion Strategy
Nomba’s immediate strategy is to use the new financing to strengthen its operations in the DRC, which currently serves as a key base for the company’s cross-border settlement activities between Central Africa and Asia.
From there, the fintech plans to establish stronger payment connections in additional African markets, with Zambia and Uganda identified as its next destinations.
The expansion reflects Nomba’s broader ambition to build infrastructure capable of supporting businesses involved in international trade.
Rather than focusing solely on domestic payments, the company is positioning itself as an intermediary that can help African businesses move money across borders more efficiently.
Adewale said the company would continue “scaling our cross-border infrastructure this year,” while expanding into new African markets and strengthening “the payment links between Africa and its trading partners in Asia.”
The approach could potentially place Nomba in a strategically important position as African businesses increasingly participate in international commerce and require faster, more accessible ways to pay suppliers and receive funds from overseas customers.
What the $3m Debt Facility Will Fund
The US$3 million facility is debt financing arranged through CardinalStone Finance Company Limited rather than an equity investment in which Nomba would surrender part of its ownership.
The capital is intended primarily to provide the liquidity and financial capacity required to support Nomba’s expanding cross-border payments operations.
For international payments, liquidity is particularly important because businesses may need to pay suppliers or receive funds in currencies such as the US dollar. Nomba therefore needs sufficient access to foreign currency to facilitate these transactions without unnecessary delays.
The company said the facility would be used to expand its cross-border payments infrastructure out of the DRC and provide the additional US dollar liquidity needed to power its near-instant payment network.
Adewale described the facility as both a financial boost and a vote of confidence in the company’s business model, saying it was “also a strong signal of confidence in what we’re building for the next generation of African businesses.”
From $480m to More Than $1bn in Monthly Transactions
Nomba currently processes more than US$480 million in transactions every month across its DRC operations and Canadian-licensed money service business. Its new target is to increase that monthly volume to US$1 billion and beyond.
However, the figure represents transaction volume rather than revenue or profit. In other words, Nomba is not saying that it earns US$480 million every month or that the company will generate US$1 billion in monthly income.
Instead, the figures represent the total value of payments moving through its infrastructure.
The distinction is important because payment companies typically earn revenue from fees and other services attached to transactions they facilitate.
If Nomba successfully doubles the value of transactions passing through its network, its ability to generate income could increase, provided the underlying transactions remain commercially viable and its operating costs are effectively managed.
The target nevertheless demonstrates the scale of Nomba’s ambition as it attempts to become a major player in Africa’s increasingly interconnected payments ecosystem.
Nomba’s Evolution from Kudi to a Profitable Fintech
Founded in 2017 by Yinka Adewale and Pelumi Aboluwarin, Nomba began its journey under the name Kudi before evolving into a broader omnichannel payment service provider.
Over the years, the company has expanded beyond basic payment services and developed infrastructure designed to serve businesses across different payment channels.
Its current position also builds on substantial institutional backing. Nomba raised a US$30 million pre-Series B funding round in 2023, giving the company additional capital to develop its operations and technology.
The company has also evolved into a profitable business, an important milestone in an African technology ecosystem where many startups depend heavily on successive rounds of external investment to finance expansion.
Its ability to generate income while continuing to attract financing provides Nomba with multiple options for funding future growth.
The latest debt facility therefore represents another layer in that financing strategy, allowing the company to access additional capital without necessarily raising another equity round and diluting existing ownership.
Connecting African Businesses to Global Markets
At the heart of Nomba’s expansion is the growing need for efficient financial infrastructure to support Africa’s international trade.
Businesses importing goods from Asia, exporting products abroad or conducting commercial activities across African borders require payment systems that can handle different currencies, regulatory environments and settlement networks.
Nomba believes existing infrastructure has not kept pace with the continent’s expanding trade relationships.
Adewale noted that “African businesses are trading more with the rest of the world every year, but the infrastructure to support that trade is still catching up.”
CardinalStone’s Managing Director, Ayoola Adeola, similarly described cross-border payments as a significant growth opportunity, noting that the transaction reflects confidence in “the role innovative financial infrastructure can play in connecting African businesses to global markets.”
For Nomba, the challenge now is to translate its financing and expansion plans into sustainable transaction growth.
Successfully moving from US$480 million to more than US$1 billion in monthly payment volume would require not only liquidity but also reliable technology, regulatory compliance, strong banking and payment partnerships, and growing demand from businesses across its targeted markets.
__________________________
Bookmark Techparley.com for the most insightful technology news from the African continent.
Follow us on X/Twitter @Techparleynews, on Facebook at Techparley Africa, on LinkedIn at Techparley Africa, or on Instagram at Techparleynews
